Climate Change Data

ELGi Equipments Limited

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:3,571 tCO2e/year
Scope 1 Emissions:3,571 tCO2e/year
Scope 2 Emissions:12,691 tCO2e/year
Renewable Energy Share:40%
Total Energy Consumption:122,608 GJ/year
Water Consumption:41,771 KL/year
Waste Generated:2927 tons/year (non-hazardous) and 394 tons/year (hazardous)
Carbon Intensity:Reduced by 6% (tons/million sale)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions intensity by 6% (tons/million sale)
  • Reduced energy intensity by 11% (GJ/million sale)
  • 40% of ELGi’s energy requirement is sourced from renewable sources
  • 1.02 MW of energy conserved by implementation of energy efficiency projects across operations
  • All manufacturing locations are Zero Liquid Discharge (ZLD)
  • 70% recyclability of waste scrap generated internally
  • 25+ Green product certifications

Social Achievements

  • Launched #whatsyourfinishline challenge to promote employee well-being
  • Launched #StepsForChange campaign to promote sustainability among employees
  • Established ELGi Matriculation School providing high-quality education to underprivileged children
  • Provided support to Red Cross and Susan G. Komen
  • Reduced employee turnover in some age groups

Governance Achievements

  • Established six committees of the Board to oversee various aspects of governance
  • Implemented robust ESG review mechanism
  • Extended ESG governance to supply chain partners

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Make existing products 5% more energy efficient by 2030
  • Attain 80% of product range availability of hFO based dryers by 2030
  • Achieve 2x training mandays per employee per year by 2024
  • Achieve 20% women employees in staff category by 2030
Short-term Goals:
  • Reduce carbon intensity to 28% by 2026-2027
  • Reduce the use of fresh water to 50% by 2026-2027
  • Send zero waste to landfill by 2026-2027
  • Achieve zero LTIFR by 2026-2027
  • 100% employees to receive human rights training by 2023

Environmental Challenges

  • Increased material costs impacting margins
  • Global supply chain disruptions
  • Increased employee turnover in some age groups
  • Potential negative impact of climate change and related regulations
Mitigation Strategies
  • Implemented procedures to anticipate cost increases and plan commensurate pricing increases
  • Made major strategic inventory investments
  • Strengthened talent acquisition process and investment in talent development model
  • Change in product portfolio to reduce dependence on diesel-powered compressors
  • Implementing the ESG approach across operations

Supply Chain Management

Supplier Audits: Scheduled Supplier Safety audit

Responsible Procurement
  • Ethical business practices
  • Health, Safety and Environment policy
  • Energy policy
  • Supplier quality improvement programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (Air compressor Plant)

Sustainable Products & Innovation

  • Energy-efficient oil-lubricated and oil-free compressors
  • Heat Recovery Systems
  • Electric portable compressors

Awards & Recognition

  • Engineering Excellence Award 2022
  • Deming Prize 2019
  • CII Design Excellence Award

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:15,238 tCO2e/year
Scope 1 Emissions:1,776 tCO2e/year
Scope 2 Emissions:13,462 tCO2e/year
Renewable Energy Share:13%
Total Energy Consumption:95,543 MWh/year
Water Consumption:38,486 m3/year
Waste Generated:4277 tons/year
Carbon Intensity:0.87 tCO2e/Million of sale

ESG Focus Areas

  • Resource Neutral Operations
  • Product Stewardship
  • Employee Wellbeing
  • Human Rights
  • Diversity and Inclusion
  • Accountability
  • Ethics & Integrity

Environmental Achievements

  • Reduced carbon emissions by 2,200 tonnes
  • Recycled 50% of total water withdrawn
  • Enhanced rainwater harvesting capacity to 6 million litres per year
  • Diverted 1 million kgs of waste sand from landfills
  • 13% renewable energy mix in electricity use
  • 8% reduction in water use intensity
  • 72% of foundry sand recycled

Social Achievements

  • LTIFR reduced to 0.44
  • 96.6% of employees received Human Rights Training
  • Launched the “GRG-ELGi Digital Innovation Dojo” for women in STEM
  • Increased training hours per employee
  • INR 5.29 million allocated for Corporate Social Responsibility

Governance Achievements

  • Implemented an ESG Governance model
  • Created Sustainability Champions across functions
  • Rolled out supplier code of conduct (50% compliance)

Climate Goals & Targets

Long-term Goals:
  • Achieve resource neutrality by the end of the decade
Medium-term Goals:
  • Make existing products 5% more energy efficient by 2030
  • Attain 80% of product range availability of HFO based dryers by 2030
  • Send zero waste to landfill by 2026-27
Short-term Goals:
  • Reduce carbon intensity by 28% by 2026-27
  • Reduce freshwater usage by 50% by 2026-27
  • Achieve zero LTIFR by 2026-27
  • Achieve 20% women employees in staff category by 2030

Environmental Challenges

  • Supply chain uncertainty due to the Ukraine war
  • High energy costs
  • Record inflation softening demand
Mitigation Strategies
  • Strategic inventory investments to mitigate supply chain delays
  • Price increases to maintain margins
  • Investing in fixed costs to improve operational capabilities

Supply Chain Management

Supplier Audits: 50% of suppliers have declared compliance with ELGi’s code of conduct

Responsible Procurement
  • Supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards’ ‘core’ requirements

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 5 (Gender Equality)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)
  • Goal 17 (Partnerships for the Goals)

The report aligns ELGi's initiatives with these SDGs.

Sustainable Products & Innovation

  • Oil-free compressors, energy-efficient compressors, Heat Recovery System (HRS)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:7,543.45 tCO2e/year
Scope 1 Emissions:1,440.00 tCO2e/year
Scope 2 Emissions:6,103.45 tCO2e/year
Renewable Energy Share:44%
Total Energy Consumption:76,023.80 GJ/year
Water Consumption:41,064.00 KL/year
Waste Generated:2,960.53 tons/year
Carbon Intensity:0.41 tCO2e/million INR (2023-24)

ESG Focus Areas

  • Environmental Stewardship
  • Employee Well-being
  • Ethical Governance
  • Community Development
  • Sustainable Supply Chain

Environmental Achievements

  • Reduced carbon intensity by 55% (in line with 2026-27 target)
  • Reduced freshwater use by 4% (in line with 2026-27 target)
  • Achieved zero waste to landfill
  • Increased renewable energy share from 15% to 44% through wind and solar power partnerships
  • Recycled approximately 236 tons of processed foundry sand
  • Planted 2000 trees

Social Achievements

  • Achieved 79% culture survey score (surpassing industry standard of 73%)
  • 100% of employees received Human Rights training
  • Launched B.Voc Programme in Production Technology in collaboration with CUTN, providing vocational training and employment opportunities
  • Established a creche on campus to support working parents
  • Organized ELGilympics 2023 with over 1000 participants
  • Conducted a medical camp at Eera Nenjam nursing home
  • Supported the Coimbatore Marathon for cancer awareness

Governance Achievements

  • Implemented a comprehensive Supplier Code of Conduct, with 82% of spend directed to compliant suppliers
  • Established a two-tier governance structure (ESG Steering Committee and Sustainability Champions)
  • Implemented a Whistle-blower Policy

Climate Goals & Targets

Long-term Goals:
  • Attain Net Zero status
  • Achieve resource-neutral operations
Medium-term Goals:
  • Achieve 80% of product range availability of Hydrofluoroolefins (HFO) based dryers by 2030
  • Make existing products 5% more energy efficient by 2030
  • Achieve 20% representation of women in staff positions by 2030
Short-term Goals:
  • Reduce carbon intensity by 28% by 2026-27
  • Reduce freshwater use by 50% by 2026-27
  • Achieve zero waste to landfill by 2026-27
  • Achieve zero LTIFR by 2026-27

Environmental Challenges

  • Global economic slowdowns and geopolitical tensions
  • Inflation and economic sluggishness across markets
  • Supply chain disruptions
  • Maintaining a zero-accident workplace culture
Mitigation Strategies
  • Multifaceted strategy encompassing organic growth and strategic acquisitions
  • Focus on energy efficiency and quality
  • Proactive engagement with suppliers via ESG-based learning initiatives
  • Hazard Identification and Risk Assessment (HIRA) framework
  • Near-miss reporting system
  • Enhanced equipment and refresher training on material handling

Supply Chain Management

Supplier Audits: Planned audits for 30 suppliers

Responsible Procurement
  • Supplier Code of Conduct (19 codes covering all aspects of ESG)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, ISO 22000:2018, Green product certifications for EN (10 products) and EG (18 products) series

Third-party Assurance: Price Waterhouse Chartered Accountants LLP (Limited Assurance)

Sustainable Products & Innovation

  • ELGi OF90-160 Range (Integrated Heat Recovery System)
  • ELGi EG90-110 SP Range (two-stage airend design)
  • ELGi EG11-45 PM VFD Range (Permanent Magnet Synchronous Motor)
  • ELGi Air Alert IoT-based Machine Monitoring System
  • AR Premium Series Energy-Saving Cyclic Refrigerated Dryers
  • PG 1350 Rig Compressor
  • AB Series oil-free air compressors